SC suspends tax deduction on mobile cards

LAHORE: The Supreme Court of Pakistan has suspended tax collection on mobile cards here on Monday.

Last month, Chief justice of Pakistan (CJP) Mian Saqib Nisar had taken notice of the high levy charged on mobile phone cards in the country as he asked under which law Rs40 were being deducted from Rs100 mobile cards.

A three-member bench of the SC heard the suo motu case at the Lahore Registry. The CJ observed that there should be a  difference  between those who pay their taxes and the  evaders.

Justice Ijaz Ul Ahsan questioned  Chairman Federal Board of Revenue, whether  a person who does not fall under the tax net  can be charged?

On this, the FBR chief explained that collection of service charges from mobile phone users is the policy of telecom companies.

At present, as per some reports, on the charge of a Rs100 pre-paid mobile card, a 19.5 percent Federal Excise Duty (FED) is charged along with 12.5 percent withholding tax and 10 percent service/maintenance charge.

According to statistics revealed by the Pakistan Telecommunication Authority in January this year, the number of mobile phone users stands at 144 million as compared to 142.5 million in October 2017.